UAE – Taxes and compulsory health raise inflation
Saturday, 07 29 2017, Category: Insurance and Reinsurance, Country: U.A.E
The report “Economic Insight: Middle East: Q2” published by Oxford Economics confirms that the introduction of Value Added Tax (at 5%, in January 2018, and implemented across the GCC) will add 2 percentage points to inflation in 2018, pushing inflation to 4% overall. At the same time, the government recently legislated to enable excise duties on soft drinks and tobacco of up to 100% of the product value.
Moreover, new regulations require all expats and dependents to hold health insurance in order to renew visas, taking a further chunk out of household spending power.